Microsoft is trying to get people in developing countries online. As a part of this initiative, the tech giant has launched ‘Affordable Access Initiative’, reports Tech in Asia.
Microsoft is partnering with local entrepreneurs and giving grants across the globe to startups that are working to provide affordable access in their local markets. A Philippines based startup, Wifi Interactive Network (WIN) has won this grant through setting up a ‘wifi bundling’ startup. WIN gets brands to give wifi to the consumers by giving a wifi code that allows the consumer to connect to the local hotspot upon purchase.
WIN gets local brands in Philippines to carry the cost of installing and maintaining wifi hotspots at stores. This extends to small neighborhood convenience stores to bars. On the consumer’s side, it is also very straightforward, they simply need to register for access via smartphone and have the store approve the request, then they will receive a passcode for wifi access.
Wifi Interactive Network (WIN) has won this grant with its ‘wifi bundling’ startup, which packages free wifi hotspots with typically bought consumer goods.
WIN allows consumers to buy internet access in sachets. Sachets are a common way to buy consumer products, such as shampoo or milk in emerging markets, as they are cheaper than bottles. If a consumer buys a sachet of a sponsoring brand’s milk, they will get wifi access for usually 30 minutes.
This is a sustainable business model because the brands generate immediate revenue and acquire data analytics of purchase behavior at the store level. Philip Zulueta, WIN Founder
It monetizes by charging brands a monthly subscription fee per location, and now has 41 wifi hotspots. 34 in the capital with the rest in provinces in Luzon island.
The startup is planning to use the $150,000 funding from Microsoft to install base stations that will broadcast wifi signal to areas without any internet coverage.
By penetrating the low income markets, startups such as WIN are helping to boost the tech infrastructure of Philippines, as more people want access to data. Everyone has the potential to become a consumer, Philippines’ sachet market operates on smaller bite sizes with high purchase frequency, which is consistent with our sponsors’ target audience.
As WIN tackles the problem of consumers who can’t afford data plans that matches their income, its business model could go onto provide access to a whole new market segment.
A version of this appeared in Tech in Asia on July 4. Read the full article here.